The lame duck Congress and the President have until December 14 to reach a deal to avoid the fiscal cliff.

Unless of course the leadership wants to extend their actual work session and cut into their precious holiday break.

But it seems like the election may have had a real effect on the general attitude here in Washington.

Many are hopeful that those who were defeated or are retiring from Congress will find the courage to do what is required.

Republicans know that many of the Tea Party members who simply refused to legislate and reach any compromise will be gone.

They also know that they were trounced. Barack Obama and the Democrats won handily so they must compromise.

The Democrats also know that the electorate voted for a divided government - which means they are also expected to compromise and cut a deal as well.

Image Caption:Pressure is on Congress to cut a fiscal deal with President Obama

If the Congress cannot reach agreement the Sequestration - across the board cuts in all government spending - will automatically occur and the Bush Tax Cuts will also expire on January 1, 2013.

The combination of these two events could be deadly to the delicate economic recovery and send the US back into recession.

If the legislators fail to deliver this time it could mean an immediate financial crisis and a further downgrade and erosion of US credibility in the international financial marketplace.

Key players on both sides are making all the right gestures, sending a message that they are willing to compromise and legislate.

Some top Republicans - like Senators Saxby Chambliss and Lindsay Graham - have gone out on a limb to say they are willing to violate their no new taxes pledge.

This is the pledge that has been signed by 250 Republicans in the House and Senate (under the threat of losing their jobs).

The pledge is the tool the notorious tax hawk Grover Norquist of Americans for Tax Reform has used to keep a stranglehold on Republicans and prevent them from agreeing to raise taxes in any form whatsoever.

On the other side, key Democrats are also entertaining the concept of entitlement reform, namely Medicare and Social Security.

Some here in DC think the President and the leaders of both parties should sit down together and see the movie Lincoln for a lesson on how to legislate and get difficult things done - which may include some real horse trading, compromise and ego sacrificing!

Image Caption:Barack Obama with his cabinet in July 2012

While the focus on Capitol Hill may be avoiding a US and global financial catastrophe, taking place simultaneously is Mr Obama's challenge to fill his second term senior cabinet posts and get those positions confirmed by the US Senate.

The President is expected to begin naming his second term Cabinet soon - putting an end to the most popular inside the beltway parlour guessing game for good.

The most difficult appointment, it seems, is the replacement for Secretary of State Hillary Clinton - clearly a hard act to follow especially with the current problems in the Middle East.

A swift decision and speedy Senate approval is crucial under the latest circumstances.

Image Caption:Secretary of State Hillary Clinton

Mr Obama has more than floated UN Ambassador Susan Rice's name as a replacement.

This possible choice has become something of a lightning rod since most Republicans (and even some Democrats) think she was less than forthcoming in her statements regarding Benghazi.

It remains to be seen whether Mr Obama wants to waste his just-gained political capital on this rather difficult appointment while needing all of his bargaining power to challenge Congress to come up with a compromise to avoid the imminent fiscal cliff.

Other possible names floating around for the nation's top diplomatic post include Senator John Kerry - who chairs the Senate Foreign Relations Committee - White House National Security Adviser Thomas Donilon and Deputy Secretary of State William Burns.

Even "Explainer-in-Chief" and Mr Obama's top campaign surrogate Bill Clinton has been mentioned in some circles.

Timothy Geithner has announced he does not plan to stay on as Treasury Secretary.

Possible replacements include Jack Lew - the current White House Chief of Staff; Kent Conrad - chairman of the Senate Budget Committee who is retiring from the Senate; and Erskine Bowles - former Bill Clinton White House Chief of Staff and the Co-Chair of the Simpson Bowles Commission.

Leon Panetta has not announced that he is leaving his role as Defence Secretary however, there is widespread speculation he plans to step down from his job at the Pentagon.

The job of Secretary of Commerce is open and is currently filled by acting Secretary Rebecca Blank - who could be a replacement.

Other likely candidates could be Fred Hochberg - President of Export-Import Bank; Jeffrey Immelt - CEO of General Electric; Ron Kirk - US Trade Representative; and Penny Pritzker - a close Obama friend and major Obama campaign financial supporter in 2008 and 2012, Hyatt Family heiress and successful Chicago Business woman in her own right!

The Director of Office of Management and Budget spot is also open and currently filled by Deputy Director Jeff Zients.